On October 6 I wrote about my thoughts regarding Unemployment Statistics.
I recently ran across the following from John Mauldin, found in his October 23 "Thoughts From The Frontline" newsletter:
"With 9.8% unemployment, 7% underemployed (temporary), and another 3-4% off the radar screen because they are so discouraged they are not even looking for jobs, and thus are not counted as unemployed (who made up these rules?) ..."
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There are numerous aspects of the Unemployment situation that I find highly noteworthy. If one assumes that the "true" Unemployment Rate is 20%, as per above, that in itself is outsized from a historical perspective. One would have to look back to the worst period(s) of The Great Depression to see such (stated) Unemployment Rates.
Also, for all of the hardship this unemployment situation is causing, it doesn't seem to be causing undue concern or focus. Perhaps the vast majority has adopted the traditional view, one that economists routinely site, that Unemployment is a lagging indicator and thus the problem will improve as the purported economic recovery progresses.
Another facet of note is that the stock market valuation seems incredibly high when compared to the Unemployment Rate. While this dichotomy may last temporarily, I would expect a definite "resolution" to close the gap.
SPX at 1057.71 as this post is written
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